October 20, 20232 yr comment_80012 Our company is considering switching to to an unlimited PTO model. Has anyone encountered issues explaining this to an auditor? Report
October 23, 20232 yr Author comment_80059 On 10/20/2023 at 7:49 PM, Neil Roberts said: can you provide more detail about an unlimited PTO model? No vacation or sick time will be accumulated and nobody will have a "bucket" of hours/days. Employees can take an "unlimited" amount of PTO, but have to get their jobs done and coordinate with their manager. Report
October 23, 20232 yr comment_80060 5 minutes ago, Former_DCAA said: No vacation or sick time will be accumulated and nobody will have a "bucket" of hours/days. Employees can take an "unlimited" amount of PTO, but have to get their jobs done and coordinate with their manager. How would this work if employees are subject to the SCA? Report
October 23, 20232 yr Author comment_80061 1 hour ago, Retreadfed said: How would this work if employees are subject to the SCA? There is nobody subject to SCA. Report
October 23, 20232 yr comment_80063 If I understand the situation correctly, the company is moving to a pay-as-you go model. There is no liability on the balance sheet. Is that correct? If so, what does CAS 408 say? It occurs to me that the company can estimate its liability, based on historical usage trends. A liability for the estimated annual usage can be booked. Let DCAA audit that value. Report
October 23, 20232 yr Author comment_80066 11 minutes ago, here_2_help said: If I understand the situation correctly, the company is moving to a pay-as-you go model. There is no liability on the balance sheet. Is that correct? If so, what does CAS 408 say? It occurs to me that the company can estimate its liability, based on historical usage trends. A liability for the estimated annual usage can be booked. Let DCAA audit that value. Correct, there will be no liability on the balance sheet. They're still a bit small for CAS to come into play, but I will review CAS 408. Report
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